here is kailey leinz. death of jamal khashoggi was a mistake perpetrated by a rogue operation. the u.s. and its allies are skeptical. france wants more information. germany put arms sales on hold. president trump stress the importance of u.s. relations with the saudis. trump chief economic adviser blames china for refusing to engage on trade issues. larry kudlow told the financial thes the u.s. has given government a detailed list of demands and has no response. president trump believes it will take more time for those tariffs to have an impact on the chinese economy. of central american migrants are openly defying the u.s. and mexico governments. they are heading to the u.s.. mexico is under pressure from the u.s. to stop the caravan. the cofounder of one of the largest alternative investment firm says be cautious. they spoke with bloomberg in sydney. >> our economy is doing well. months, it will become the longest recovery in history. i do not believe there are signs of recession anytime soon. kailey: glo

vonnie: we want to get to kailey leinz. turkey, american pastor and her brunson has been freed after two years in detention in a case that strained ties between the two nations. was convicted on charges relating to the coup attempt but was freed on time served. the u.s. imposed sanctions on turkey. are considering a new way to break the deadlock in brexit talks. and british officials are discussing an extension of the post-brexit transition. that could be a way resolving the impasse over the future of the irish border. they are trying to reach compromise before a summit next week. surplusus risk trade rose to a record $34 billion last month despite terror spirit exports to the u.s. increased 13%. washington and beijing have impose tariffs on goods. china may have rushed out existing orders before tariffs took effect. global news 24 hours a day and at tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. this is "bloomberg." vonnie: we are talking the 100 index i

here is kailey leinz.dent trump's morning that a caravan of central american migrants heading toward the u.s. constitution a national emergency. he said the group includes criminals but did not offer any proof. he says he will begin cutting off aid to guatemala, el salvador, and honduras for not being able to stop the migrants. president trump heads to texas to campaign for senator ted cruz, who is in a tight race for reelection with democratic congressman beddoe o'rourke. rorke.o o' president trump also insulted ted cruz is wife during the primary campaign. larry kudlow told the financial crimes -- the financial times that she's you and paying has given a list of demands -- that president xi jinping has not and in germany, the central bank warns growth may has stalled in the third-quarter. the slowdown in europe's largest economy was due to the auto industry having problems adapting to new tech procedures. it says the breaking growth should not last long. global news 24 hours a day, on air and @tictoc on

let's get straight to kailey leinz. alks are said to be on hold because theresa may's cabinet is not close enough to agreeing on a way forward. source, no new plan is likely to become put forward by the british side before next monday's annual u.k. budget statement. a report by the national institute of economic research it says a no deal brexit would shave percentage points off u.k. growth next year. an agreement that would keep most of the arrangements which he gdp grow. south africa's president says he has been overwhelmed at the interest in his summit. the leaders of the country suffered huge damage under the administration of jacob zuma and that his government is rolling back the bad decisions of the past. >> we are ahead of the track. we are way ahead and i am overwhelmed by the level of to be inthat continues the south african economy. the new fed vice chair has backed the central banks plan for further gradual rate increases. at the peterson institute of international economics, the new number two at the federal

let's catch up on all the news with kailey leinz. kailey: president trump is threatening to use the u.s. military to shut down the border with mexico. he wants to stop what he calls "an assault i a caravan of migrants by central america." the president is considering cutting off aid to guatemala, i hope there is -- what, honduras, and el salvador. according to a note from the bank, the odds are higher than 80% over the next three years that the u.s. will fall into a recession. jpmorgan is more optimistic than the feds recession tractor. fort-time applications unemployment benefits fell more than expected last week. meanwhile, continuing claims dropped to the lowest level since 1973. global news, 24 hours a day, on air and at tic-toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm kailey leinz, this is bloomberg. guy: i want to take you to brussels. somea merkel is laying out comments at the moment. this is the end of summit press conferences. the german one is next to a french one. theresa may

i'm kailey leinz, this is bloomberg. guide? thank you very much. take a look at where the markets sit right now. european stocks are stabilizing. in terms of the euro-dollar, dipping a bit during the draghi press conference. we are seeing some disappointing numbers being generated through the advertising sector today, coming from wpp but rippling through other ads stocks as well , wpp trading down really sharply. keep an eye on gold as well, worth paying attention to at the moment. 1200 $36 to 1250, it does not seem to make its way through there in the moment. innie: we have ethan and beating estimates, welcome news for the company as a competitive holiday season gets underway. chairmanthwari is the and ceo, also the president, and he joins us now. congratulations on a great quarter for you. you mentioned that services are more important. how do you intend to build up services as the competitive landscape for selling furniture is getting more difficult? farooq: first of all, it is good to be back at bloomberg. i discussed yesterday in our earnings

i'm kailey leinz. this is bloomberg. vonnie: thank you.e travel giant expedia's earnings topping estimates, a rare bright spot today, it is up more than 3%. emily chang is in san francisco with her guest. emily: i am joined by the ceo of expedia, mark okerstrom a strong . a strong quarter and the shares are up, but down 18% over the last year. is there something investors are missing? mark: this has been an important year for us. about 12 months ago, we articulated a strategy that was focused around three major pillars, being locally relevant on a global basis, being customer centric and is speeding up the pace of execution. we stepped up investments this year. and people did not understand that at the beginning of the year, but this quarter, the last quarter we strung together a number of strong quarters showing investments are paying off. for this quarter, adjusted earnings per share were up 46%, so we have momentum and it is good to have a quarter to show that through in the financial results. emily: we have had a lot of whether this ye

i'm kailey leinz. this is bloomberg. breaking news on gm. auto sales for the third quarter down 11% versus of 4.6% in q2. gm's total vehicle sales fell 11% in the third quarter. this has been the pattern. do have a very unfavorable comparables to the last quarter and last year. joining us to explain is david welsh. we have seen it disappoint. explain why we are comparing with the quarter that is making us look bad this quarter. >> we did have big auto sales a year ago. there are some other factors. you have rising interest rates and inflation. if you look at auto sales for the year through august we are up about 1%. sounds like that's pretty good because the auto market was very good last year. this is solid moneymaking business for everybody. incentives have been higher. fleet sales have also been higher. been asust hasn't strong. earlier in the year the gm president described the mark to me as a little bit squishy. i think it is getting softer right now. there's competition from the used market. it's not a disastrous market by any stretch.

i'm kailey leinz. this is bloomberg. more of our exclusive interview with mitch mcconnell. he spoke with us about a number of issues including the mounting controversy over the disappearance of washington post journalist jamal khashoggi. also the upcoming midterms and more. >> i think it's good the the secretary of state out to talk to the king. we need to find out first what happened before deciding what kind of responses appropriate. >> you think there will be some type of response. >> i can't imagine there won't be. i think we need to find out what happened. with some of the republicans in your party including bob has called on the usage of the magnitsky act. do you think this is an appropriate mechanism to use? >> it may be. let's find out what happened. that days from now we saw the justice kavanaugh confirmation has completely captivated the nation for different reasons for different people. i'm sure you've got your i on red state democrats. how do you think that has changed the contours of the race? >> it has ener

here is kailey leinz.id to be planning to quit as head of the christian democratic party after nearly two decades. according to the source, merkel told a leadership meeting she will not run again for the chairmanship in december. it is reported she wants to continue serving as chancellor. the move follows a decline for the cdu in an election over the weekend, with the party suffering its worst showing in more than 50 years. jair bolsonaro has won brazil's presidential election, marking a hard pivot to the right in latin america's biggest economy. the former army captain swept to power on a manifesto promising to open up the resource rich economy to private investments, strengthen ties to the u.s., and unleash an aggressive crackdown on epidemic crime. with almost all ballots counted, bolsonaro won 55% of the vote to beat the former mayor of sao paulo. in his victory speech, bolsonaro promised to reduce the size and cost of government and to reform foreign policy. >> [speaking portuguese] >> our government

we are to turn to kailey leinz.usan collins will announce how she plans to vote on brett kavanaugh' is confirmation at 3:00 p.m. today. collins is one of three key undecided republicans while joe manchin is also undecided. the gop will need two of four votes to confirm justice judge kavanaugh. arrested one man after he was accused of posting of thee address republican senators backing judge kavanaugh's confirmation on the internet. it has been a year since the new york times reported allegations of sexual predation against harvey weinstein. other peoplefive have been accused of sexual misconduct. according to data compiled by bloomberg. hundreds have been fired, most men. many have denied wrongdoing or questioned the motive of their accusers. european and british officials are striking an upbeat tone about a deal. jean-claude juncker said negotiations are working day and night and the sides are hoping to make progress on the irish border in time for a summit. if all goes well, they could seal the deal on a divorce n

here is kailey leinz.esident erdogan is not buying the saudi version of the death of journalists jamal khashoggi. he says his killing was a result of a thoroughly planned plot. he wants the saudi king to hold the perpetrators to account. placing the blame for a matter like this on security and not forence members is us or the community. president trump says after the midterm elections next month, commerce will vote on a bill that would give middle-class americans a tax cuts of 10%. republicans say there is no such legislation in the works. the announcement is a sign that last year's tax cut was not as popular as they had hoped. white house national security john bolton has said the russian in the election was ineffective and he said it has damaged relations between the two countries. in an interview with russian media, it was said the u.s. is in the in withdrawing treaty with missiles. in germany, shaping up to be the biggest test for angela merkel. she is warning voters not to engage in what she called le

i'm kailey leinz, this is bloomberg. vonnie: coming up, president trump pointing a finger at the federal reserve for this selloff. but our trade tensions also to blame? trade tensions also to blame? we will talk that and china with felix zulauf from zulauf consulting. this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: i'm vonnie quinn, and this is bloomberg markets. guy: let's get back with felix zulauf, ceo of zulauf consulting . us now.appatta joins felix, let me start with you. the president is blaming the fed -- is he correct? felix: i think he is correct, yes, but it is not the whole picture of costs. the trade conflict is also a problem, but he cannot a that. that she cannot say that. -- he cannot say that. guy: the fed is one factor, but how big of a factor is trade? the imf was making it clear early this week that christine lagarde feels this is a driving force affecting the market at the moment. if you look at the dax, you can see that coming through. thex: the forecasts from imf are not a high

kailey leinz, thank you.ng more about today, brookfield asset management nearing a deal to buy johnson. the stock up 3.5%. stay tuned. balance of power is next. this is "bloomberg." ♪ . . ♪ world from bloomberg's headquarters in new york, i am david westin. welcome to "balance of power" where the world of politics meets the world of business. angela merkel's surprise decision. shannon pettypiece with her report the house -- the white house is bracing to lose the house. let's start with chad in germany. the surprisegh decision. >> that was a bombshell for everyone in berlin today as well. chancellor merkel announcing she will not run again to be the party chairman for her christian democrats. they will replace her with someone at a party conference in december. she also said she will not run for reelection as chancellor when her term expires in 2021. there is already speculation she may not last

i'm kailey leinz. this is bloomberg.et's take you back to that story relating to what has been going on in turkey this afternoon. we are going to get more on that next. the lira has not bounced. some people expected to to go up as he was released. but that has not happened. i have to say, i am scratching my head on this, but it does go toward repositioning over the last few days. maybe this is the right call. or maybe it was the conviction. we will talk about that next. this is bloomberg. ♪ guy: live from london i'm guy , johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: turkey has convicted andrew brunson, but has released him on time served. the lira has not really responded to this. our bloomberg correspondent joins us from istanbul. is this a compromise that the turks were looking for to find a way out of this difficult situation? the pastor has been convicted of the offenses for which he was charged, including participating in some way in the 2016 coup attempt, but he is able to go

i'm kailey leinz. this is bloomberg. guys? guy: thank you, kaylee.he price of crude trading down, about half of 1% during they touched their highest level since 2014 yesterday. the russian energy minister and it's under no back -- alexander novak says he is not ruling out $100 a barrel when it comes to the price of crude this autumn. >> levels might be a little bit high. once we think the market will be striving to reach a balance acceptableble and reduction for consumers and producer, and probably was lower than what we see today. if you listened to the main panel of today, the president about $65 to $75, which seems to be an acceptable level for suppliers and consumers. let's go now to moscow, with our reporter standing by. you had the saudi energy vak on a and no panel earlier on. where do they see the price going? >> good afternoon. as you and i both know, as follow, part of opec, they do not target price. but one thing is clear. they reiterated they are pumping at record levels. saudi arabia pumping it 10.7 million barrels a day. they reiterated

i'm kailey leinz. this is bloomberg. vonnie: thank you. mike pompeo has been speaking.rabia is cooperating in this investigation. we're joined now for saudi arabia. if not, what does it mean about reporting on saudi arabia. >> the saudi government is willing to -- involved iney were any way, denying allegations that he had been killed in istanbul. now they have changed tack a little bit. and he said the saudi government would cooperate thoroughly on this investigation. >> mike pompeo also said the u.s. needs to be mindful of its relationship with saudi arabia. i am assuming that means this will not go so far. classes is uncertain. probably some of the strongest we have seen against saudi arabia and the 10 years i have been covering closely. saudi arabia is such a pivotal ally for the middle east. also in terms of its role in counterterrorism. along with his relationship, minimizes of not to what happened, but the administration is probably cautious about how to proceed. there is a lot at stake now. >> right. withouts, would it work the u.s. and saudi arabia? >> that is

kailey leinz has more. i was genuinely surprised.t much for a good quarterly performance? >> it is because the turnaround has been long-awaited. management said the strategies would pay off and the results are showing that maybe that is the case. revenue beat $1.4 billion, above estimates. epsthe company listed forecast this year, the fourth straight quarter that they have gained on results. but a bigger jump today than in previous quarters. it is because a lot of the strategies, for example, reducing inventory. we have a chart we can show you, growth has been in the double digits, but they have been cutting about 40% of their products and sales focusing on the high sellers. so producing the glut that was making them have to do discounting, for example, and that was weighing on growth. the company also cutting costs. they announced the elimination of the 400 jobs last month, so that is working. but they need to work on domestic sales. they were sluggish this quarter. guy: is this a trend? are there things that still need to be done,

guy: here's kailey leinz.s president recep tayyip erodgan isn't buying the saudi version of the murder of jamal khashoggi. he says his killing and the saudi consulate in his dental was the result of a early planned plot and he wants the king to hold the perpetrators to account. >> placing the blame on a few security officials will satisfy neither of us nor the international community. >> south korea's president has formerly -- formally approved his reconciliation deal with kim jong-un. the ratification will help efforts to get rid of nuclear efforts on the peninsula. talk of a vote on middle-class tax cuts is news to republican leaders. congress will vote on a bill that could give middle-class americans i tax cut of about 10%. republicans say there is no such legislation in the works. a caravan of more than 7000 refugees is headed towards the united states. .hey face more than 1000 miles president trump says he will cut aid to three a central of -- american countries. global news 24 hours a day on air and at t

here is kailey leinz. justy: chief prosecutor issued a statement on jamal khashoggi, saying he was strangled to death as he entered saudi arabia's consulate in istanbul. they say his body was dismembered after he was killed. president trump will head to florida tonight to begin a flurry of rallies ahead of next election. officials say of and subject the key senate races, which have previously been to republicans. he will hold 11 rallies ahead of the vote. concerned about the white house undermining the central bank. she wants president trump to stay clear -- dear clear of monetary policy. she says she expects at least two more interest-rate hikes in the coming months, but believes the fed is trying to take its first off of the accelerator.the president has repeatedly said he isn't happy with rising rates. global news 24 hours a day on-air, and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. you.thank coming up, mark zuc

i am kailey leinz, this is bloomberg. ♪ >> live from bloomberg world headquarters, i am shery ahn.e top stories we are following. trump posner trade deal, ux, mexico, and canada agree but is it a new revolution or a ebrand? tesla and elon musk settle with the sec for $40 million and agreed to abort changes. now the ceo says the company is close to making a profit. later today, we'll hear from commerce secretary wilbur ross and get his take on new trade agreement. check on theuick major averages, we are seeing u.s. stocks off session highs. the dow gaining 8/10 of 1%. we had seen automakers and dairy producers gaining ground while the s&p 500 is being led higher by energy. oil is trending higher. the nasdaq is up one quarter of 1%. the new trade deal, the new nafta. we are seeing the mexican peso and canadian dollar gaining ground strength. the canadian dollar is now at the strongest level since may against the u.s. dollar and gaining grounds for second consecutive session. more about the new trade deal between u.s., mexico, and canada, let's welcome bloomberg's sarah mcgregor from

right now, here is kailey leinz. ley: it could be an interesting flight aboard air force one. board,enstein will be on giving him the chance to speak with president trump -- a conversation that was promised after reports he had been secretly taping the president. reports ofdenied that, but the president said he would rather not fire him. u.s. secretary of state mike pompeo had what was described as a testy exchange with china's foreign minister in beijing today. accused the u.s. of meddling in domestic affairs. voters unhappy over years of and ousted the far right strongman who surged to he carries 47% of the vote, just shy of the majority needed for a runoff. beeno americans have awarded the nobel prize in economics. they were honored for integrating climate change into macroeconomic analysis. global news 24 hours a day on air and tictoc on twitter, powered by more than 2700 analysts in more than 120 countries. i'm taylor line. very much.you coming up, london metals week. base metals have been slumping big-time this year. we have huge volatility. we will talk with the head of

i'm kailey leinz. this is bloomberg. tom: thanks so much.g back to the high-end of its recent trading range. features of 20 right now. dow futures up 168. there is a swirled the market. next screen, please. 24.2.x up the dow closed yesterday well under 25,000. that is what is not happening. yen is not at 111. renminbi is an important story. francine: looking at treasuries. because it isyen a good way of looking at some risk sentiment as you remind us on a daily basis, it is what the pros look at. u.s. stocks took a breather in europe. treasuries falling, and the dollar holding steady. tom: we try to the hysteria free. how about a chart that says where are we for riyadh? a true correction and the ugliness of february. where we are right now is this gap to a correction, which is about 1.7%, 1.8% down further. we are not even to an official correction yet. francine: this is what i am looking at. the mixed feature for european equities. we are trying to figure out what the underlying cause of it is. s&p futures liking positive. joining us now is

i'm kailey leinz. this is bloomberg. tom: let's do a data check. chart.bank i've been watching this quietly for the last number of days. -27.we are going to get a 113 print on euro as well. this is deutsche bank on the left. if i bring it out here, you can see the breakdown. i am sorry, we are here on banks, the cfo of deutsche bank i'm few -- interview, suggesting that it is a real moment for the eu banks. francine: it's a moment, but i think the real moment will come if they merge. it would be difficult to argue otherwise that europe is over bank. -- overbanked. overall, the markets have a lot to do with it. tom: let's do the data check. what a strange equity market. down,k it was down, up, up. spread.to .2 spread. basically risk off. stronger dollar. francine: the owner of gucci doing really well in trade. thomas just remembering how much he has bought at gucci over the last quarter. european stocks seem to be bucking the trend. yesterday, there was a clear move to havens. today, the story is different. am also looking at the price of oil. this is my s